Currency Converter

A detailed review of currency converter and how it works is done in the article to help people who plan on investing in foreign businesses.

If you plan on traveling anytime soon, you will definitely be needing a currency converter to help you know the value of money in another currency. Businesses who tend to make investments abroad can make use of this too. A currency converter will help you know the differences in prices according to the countries. It can be your lifesaver as you can calculate and make estimates within a few seconds. Moreover, we have many other similar tools available you can use any type of conversion on

People who do not have an idea about this can read my detailed article given below. All the information stated below will help you know the price differences, interbank rate, market rate, and value of money. You can also know when to exchange money too. All the information given below will be extremely helpful if you are interested to know the exchange rates in your country or planning or visit abroad.

Currency Converter

What Is A Currency Converter?

A currency converter is software that can help you determine the value of money in another currency. The process only takes a few seconds because it is done with the help of an application or software. This is very helpful for all the people who are planning to visit abroad or plan on investing in imports and exports. You can know the value of the money in another currency according to the current rate. This helps you make transactions and calculate the price differences too.

The exchange rate is used to know the cost of money but it can fluctuate very frequently. Many factors in the economic sector will contribute to the exchange rate in the country. A currency converter is also called a universal currency converter because it not only helps you determine the value of your currency in other currencies but you can find the value of money after converting the foreign currency to your local currency as well.

This helps people who like doing business but want to invest in other currencies for high profits.  As mentioned above, exchange rates are determined by the factors of the economic sector in a country. You will find it strange that the exchange rate for buying and selling the currency is different because the traders keep a margin for themselves. Currency converters can help you as you already know the value and want a different currency only.

What Is the Open Market Rate?

In simple words, the open market rate is the debt or interest paid on security that is generally being traded in the open market. This can fluctuate very quickly because it is determined by the demand and the supply of the market. All the preferred stocks, government bonds, and corporate bonds are debt securities in the open market. The government can easily control the demand and supply to implement the monetary policy which will have an effect on the open market rate.

Uses Of Open Market Rate

All of the securities can be bought by the government so the money supply is increased which as a result will help the institutions to achieve their open market rate. The central bank can control the flow of money in the market. The open market rate will change continuously because of the increase and decrease of the cash flow in the open market. If the central bank wants to increase the open market rate, it will sell all the debt securities. Whereas, the securities are bought to decrease the interest rate of the securities.

This is a continuous process that is even applied to the bonds and securities that are being traded by the people in the secondary market. The government or corporate bonds are further traded by the people in the secondary market without the institutions getting involved. This is nothing complicated, it only changes the ownership of the debt security.

What Is Interbank Rate?

As you all might know, the interbank interest rate is the interest on short-term loans between financial institutions that are to be liquidated in the near future. The banks borrow money from each other for a short period of a week or more to fulfill their needs. Financial institutions or banks having money in excess lend the money to other institutions in need to satisfy the needs of their clients. The interest rate is set between the final institutions/banks according to the money and length of the contract.

It is mandatory for all banks and financial institutions to have some liquid assets to entertain the clients all the time. Whenever they run short on liquid assets, they can borrow money from the other financial institution having liquid assets in excess of at a specific interest rate for a short period. All the lending and borrowing of the money is done in the interbank market. The interbank interest rate is also called the overnight rate as it is determined by the borrowing institution themselves.

Uses Of Interbank Rate

As mentioned above, the interbank rate is set by the institutions involved in borrowing and lending money from one another. This has nothing to do with the foreign exchange rate as the bank wants to have sufficient liquid assets to accommodate the customers. The financial institution having liquid assets in excess lends only to earn some interest on them. This brings in money as the interbank interest rate is set according to the time period. The Federal Reserve does not interfere in setting the interest rate. Moreover, we have a percentage calculator to calculate the extra amounts for the exact rate differences.

Does The Currency Converter Calculator Work?

The currency converter calculator actually works on more than 150 currencies and is updated after every few minutes to give you accurate results. It can help you determine the same amount in two different currencies within a few seconds. You can even convert the values of different cryptocurrencies into USD or Euro very easily. The exchange rate depends upon various factors of the economic condition of a country. Hence you can use the currency converter calculator to know the value of your money before converting it into another foreign currency.

This calculator makes your life easy as it does the job well and that too within a few seconds. These calculators only help you know the value of your money in any other currency but when you actually go for conversion, you have to pay a huge amount for exchange. The traders or the banks have a margin of their profits for doing each transaction. You will not get the actual amount as they keep some percentage depending upon where you get the money exchanged from.

To give you an estimate, the banks and traders will charge almost 5% to 15% of your money as their profit or fee for changing the currency for you. The percentage rate is higher if you get it done at the last minute. However, the applications or the websites of the currency converter calculators are free and save you from all the math. Back in the day, people used to calculate and determine the amount of their money before traveling or investing in a business abroad themselves.

The process was extremely tiring and time-consuming and sometimes led to major errors too. Hence the currency converter calculators tool have made life easy as you just have to choose the currency and put the figures accordingly to get the results. Either if you are a business owner or you travel more frequently, you can use the currency converter for your ease. Different websites and applications for Android and Windows are available that can be downloaded.

What Is The Best Time To Exchange Money?

The currency rates fluctuate frequently which is why it is hard to mention the best time to exchange money. After observing some patterns of the trading market, I have come to the conclusion that the rates of currency fluctuate during the early morning and afternoon. You will observe great change and constant fluctuation around 7 am to 8 am in the morning. Similarly, 12 pm can be a crucial time spot too as the currency rates will tend to change quickly.

You should keep on checking the currency rates at these time windows and change them whenever you get a good rate. The best time to buy or exchange your currency is whenever you plan on traveling or want to invest somewhere abroad. Moreover, common currencies such as USD or EURO should be bought before you are headed to your destination. Whereas, if you are visiting a country that uses their local currency, it is best to get your money exchanged from a local trader after you reach.

Now you have an idea of when to look for a great exchange rate when you want to exchange money. If you want to sell money at a good rate, you should observe the market at midnight. That is when the exchange rate might be higher than in the morning. The time slots for buying and selling money are entirely different from one another.

However, this all depends upon your luck and observation skills too. You need to wait for the right time to get a great offer where you do not lose much value for your money. If you think you are not capable of observing and making a spontaneous decision for exchanging money, you can get it done at the bank too but you will have to give almost 10% of your money. Moreover you should also have info about GST Calculations its always change in every state.


What is meant by currency converter?

A currency converter can be an application or a website that will help you know the value of your money in other currencies. This is greatly used by people who like traveling or plan on doing business in other countries. The common currencies are easy to convert and calculate but determining the value of your money in any local currency can be difficult. Hence a currency converter will make the job easy and stress-free for you.

What is the best currency converter?

A wide variety of currency converters are available on the internet for your cell phone and computers. Whether you use an IOS or Windows, you can download or browse the converter to know the value of your money in any foreign currency. These converters get updated after every few minutes so there are very less or no chances of error.

Why is currency conversion necessary?

Currency conversion is very necessary to know the economic conditions of a country. It helps in determining the value of your local currency when compared with the common currencies. This gives insight and people can know the value of their money.

How do you convert money?

You can easily convert money by using the website or an application to know the value of your money in any local currency in the world. The currency converter can help you determine value within a few seconds and saves a lot of time. This helps people in foreign countries who like comparing prices and knowing the differences.


A detailed review of currency converter and how it works is done in the article to help people who plan on investing in foreign businesses. This can help you know the value of your local money in comparison with the common currency. All the information about the open market rate and the interbank rate is also given so you can have a general idea about them. You can observe the market to look for a good exchange rate before converting your local currency into a foreign currency. This will help you not to lose the value of your money during the exchange.